Meta increases the price of Meta Quest 2 VR headsets by $100
Interested in learning what's next for the gaming industry? Join gaming executives to discuss emerging parts of the industry this October at GamesBeat Summit Next. Register today.
Just a day ahead of its second-quarter earnings report, Meta said it would increase the price of its Meta Quest 2 virtual reality headsets by $100 each.
The price increase will bring the company’s revenues in better line with its costs for making the headsets, and that has become important as Meta tumbles into the recession with a core advertising business that has been weakened by Apple’s privacy push.
In the first quarter, Meta lost $2.96 billion in its VR-focused Meta Reality Lab division on revenues of around $695 million. While the ad business made up for the losses, the unheard of price increase — most consumer products get cheaper over time thanks to Moore’s Law and manufacturing efficiencies — is a signal that the company is tightening its belt for what could be a bruising recession.
Before today, Meta has been focused on investing billions to cultivate the VR market based on CEO Mark Zuckerberg’s believe that VR is the foundation for the metaverse, or the next version of the internet. On the plus side, it may mean that the company feels confident enough about demand that it can continue to sell headsets (which are already hampered by supply chain constraints) despite the price increase.
MetaBeat 2022
MetaBeat will bring together metaverse thought leaders to give guidance on how metaverse technology will transform the way all industries communicate and do business on October 3-4 in San Francisco, CA.
“Now, we’re making a change that will help us continue to invest for the long term and keep driving the VR industry forward with best-in-class
Read more on venturebeat.com
